Government eases procurement norms, bank guarantees for oxygen, Covid-19 supplies
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Relaxing tendering norms, the government has allowed global tenders to be floated for less than Rs 200 crore as well. 100% payment of advance has been approved for critical Covid procurement. Procurement on nomination basis has been permitted in case of constrained supply market.
Agencies
Besides, additional capacity expansion is planned in the near future to enhance oxygen production capacity through oxygen from power plants, refineries and steel plants.
To expedite procurement of critical Covid-19 supplies, the government on Monday relaxed the General Financial Rules (GFR) and removed all restrictive provisions to enable larger participation and faster procurement. Bank Guarantees have been waived off for all procurement.
Finance Ministry relaxes norms for sourcing Covid-19 relief materials
May 10, 2021
The Finance Ministry notified amendments to General Financial Rules in May 2020 - Getty Images×
Global tenders for procurement of less than ₹200 cr allowed till May 31
The Finance Ministry has relaxed procurement norms for sourcing Covid-19 relief materials. These include permitting global tender to be floated for a value of less than ₹200 crore and procurement of the same item at different rates.
These instructions will be applicable to the Department of Pharma, the Ministry of Health & Family Welfare and the Defence Research & Development Organisation (DRDO). “The instruction in this Department’s OM (Office Memorandum) dated May 15, 2020 specifying that no Global Tender Enquiries(GT) shall be invited for tenders up to ₹200 crore shall stand relaxed, and hence, it shall be permissible to invite GTE where necessary,” the new OM dated April 24 said, on the website of the Finance
Government eases buying norms for Covid supplies
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Last Updated: May 11, 2021, 12:03 AM IST
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Synopsis
Relaxing tendering norms, the government allowed global tenders to be floated for less than ₹200 crore and bank guarantees have been waived off for all procurement. As per the changes, 100% payment of advance has been approved for critical Covid procurement and procurement on nomination basis has been permitted in case of constrained supply market.
Agencies
The department of expenditure, under the ministry of finance, has issued special instructions relating to relief operations for Covid-19 pandemic relaxing the norms.
The government on Monday announced sweeping changes to the procurement norms including allowing sourcing of the same item at different rates to ease expeditious procurement of critical equipment and medicines Covid-19 supplies.
Bharat Biotech had issued a statement saying, “Capacity expansion has been implemented across multiple facilities. to reach 700 million doses a year,” though it did not specify by when. The company did not respond to ETs request for comment.
Principal Accounting Officers Ordered to Strictly Follow the Public Finance Management Act
The Finance Division has warned Principal Accounting Officers to ensure that no expenditure (employees related or others) is incurred without the available budget and conduct business in accordance with provisions of the Public Finance Management Act, 2019 and General Financial Rules in true spirit.
Finance Division (Budget Wing) has issued an office memorandum to all finance secretaries, additional finance secretaries and PAOs of Ministries/Divisions.
According to the Finance Division, refer to the Public Finance Management Act, 2019, it is to state that PFM Act has been enacted to strengthen the management of public finances in the Federal Government. It clarifies institutional responsibilities related to financial management and strengthen budgetary management. Section 10 relates to changes in the schedule of authorized expenditure while Sections 23 and 25 of the Act also elaborate expend